“Retreat as much as possible” has become the consensus of a shares, and the situation of “retreat down” and “retreat steadily” is taking shape.
The last day of the disclosure of the annual report of 2021 with the annual report of , Lvjing Holding Co.Ltd(000502) Ningbo Sunlight Electrical Appliance Co.Ltd(002473) and other 19 companies issued the risk warning announcement of stock suspension and possible delisting on the same day
One day, 19 companies issued the risk warning announcement of stock suspension and possible termination of listing. Behind this, the implementation of the “most stringent delisting new regulations in history” has been implemented for more than a year, and the expectation of normalized delisting of A-Shares has increased. Under the expectation of fully implementing the stock issuance registration system, the clearing of venture companies will be further accelerated, so as to effectively enhance the resource allocation capacity of the market and promote the stable operation of China’s securities market.
19 companies or countdown to delisting
On the evening of April 29, Lanhai Medical Investment Co.Ltd(600896) announced that the audited net profit before and after deducting non recurring profit and loss in 2020 was negative, and the operating income before and after deducting was less than 100 million yuan. According to the regulations, the Shanghai Stock Exchange has implemented delisting risk warning for the company’s stock trading on May 6, 2021. The company’s 2021 annual financial report was audited with qualified opinions by Hexin Certified Public Accountants (special general partnership). According to regulations, the listing of the company’s shares may be terminated by Shanghai Stock Exchange.
Wei Wei, chief strategist of Ping An Securities, said that the new delisting rules streamlined the delisting process and shortened the delisting time from the original four years to two years. The 2020 annual report is the first applicable year of the new delisting rules. If the 2021 annual report touches the delisting standard again, it will be directly terminated. Therefore, 2022 may be the year of delisting
It should be noted that the new delisting regulations have improved the financial indicators, cancelled the original single net profit indicator or operating income indicator, and changed it to negative net profit before / after deduction + operating income after deduction of business income irrelevant to the main business and income without commercial substance is less than RMB 100 million, and the listing shall be terminated for two consecutive years. At the same time, for companies that have been warned of delisting risk due to financial indicators, Cross application of financial indicators in the next year.
For example, the foregoing Lanhai Medical Investment Co.Ltd(600896) means that “the net profit before and after deducting non recurring profit and loss is negative, and the operating income before and after deducting is less than 100 million yuan” is superimposed, and “the audit report with qualified opinion is issued”.
Look at Xiamen Overseas Chinese Electronic Co.Ltd(600870) , because the net profit of the company after deducting non recurring profits and losses in 2020 is negative and the operating income is less than 100 million yuan, the company’s shares have been implemented “delisting risk warning” since May 6, 2021; In addition, the net profit of the company after deducting non recurring profits and losses in 2021 is negative, which also touches the financial compulsory delisting index.
Wei Wei pointed out that “the number of financial compulsory delisting companies in 2022 increased significantly compared with the past.”
According to incomplete statistics by the reporter of the securities times, on the evening of April 29, 19 companies, including Lanhai Medical Investment Co.Ltd(600896) , Xiamen Overseas Chinese Electronic Co.Ltd(600870) and Xiamen Overseas Chinese Electronic Co.Ltd(600870) issued similar stock suspension and risk warning announcements that their listing may be terminated.
As for the number of shareholders of company, as of the end of the first quarter of this year, the 19 companies mentioned above had 555300 shareholders, of which the number of shareholders of Xishui Strong Year Co.Ltd Inner Mongolia(600291) , Hna Innovation Co.Ltd(600555) , Zhongxing Tianheng Energy Technology (Beijing)Co.Ltd(600856) and other three companies exceeded 50000
investors need to pay attention to these key time points
According to the procedures, several links of the new delisting regulations have been adjusted, such as canceling the suspension and resumption of listing, and making it clear that listed companies will terminate listing if they touch financial indicators for two consecutive years. Therefore, investors need to pay attention to several key time points of delisting companies.
Taking Lanhai Medical Investment Co.Ltd(600896) as an example, according to the process, the trading of the company’s shares will be suspended from Thursday, May 5, 2022. The Shanghai Stock Exchange will make a decision on whether to terminate the listing of the company’s shares according to the review opinions of the listing committee within 15 trading days after the company discloses the 2021 annual report.
According to the regulations, if the listing of the company’s shares is terminated, the trading of the company’s shares will resume from the next trading day after the expiration of five trading days after the date when the Shanghai Stock Exchange announced the decision to terminate the listing of the company’s shares. The company’s shares will enter the delisting consolidation period and be marked with “delisting” in front of the stock abbreviation. The trading period of the delisting consolidation period is 15 trading days. During the delisting consolidation period, the company’s shares are still trading on the risk warning board. Delisting the listed company’s shares within 5 days after the expiration of the trading period Lanhai Medical Investment Co.Ltd(600896) shall employ a securities company with the qualification of sponsoring securities business to immediately arrange the transfer of shares into the national share transfer system for small and medium-sized enterprises for share transfer after the Shanghai stock exchange makes the decision to terminate the listing of the company’s shares, so as to ensure that the company’s shares can be transferred within 45 trading days from the date of delisting.
According to the reporter of the securities times, in addition to Lanhai Medical Investment Co.Ltd(600896) , the other 18 companies disclosed their annual reports on April 30 and their trading was suspended from May 5.
delisting mechanism is being further improved
Market analysis pointed out that under the background of fully implementing the stock issuance registration system, only when the delisting “export” is unblocked, can the benign market ecology of the survival of the fittest in the A-share market be accelerated. “Retreat as much as possible” has become a market consensus, and the situation of “retreat down” and “retreat steadily” is taking shape.
At present, the relevant delisting mechanism is still further improved. In order to meet the requirements of registration system reform and normalized delisting and further improve the supervision of listed companies after delisting, the CSRC issued the guiding opinions on improving the supervision of listed companies after delisting on April 29, which will be implemented from the date of promulgation. It is reported that the guiding opinions are applicable to companies delisting from various sectors of the Shanghai and Shenzhen Stock Exchange and companies directly transferred to the delisting sector after delisting from the Beijing stock exchange. The daily supervision arrangements of staq and net system companies listed in the delisting sector shall be implemented with reference to the provisions of the guiding opinions.
the guidance includes five parts: basic principles, delisting connection procedures, continuous supervision system, risk prevention mechanism and supervision system
Among them, in terms of strengthening the connection of delisting procedures, first, unblock the exit mechanism of the exchange, optimize the undertaking arrangements of the host securities companies, improve the incentive mechanism, compact the responsibilities of the sponsors, and promote the delisting companies to exit the exchange market smoothly and smoothly. Second, simplify the right confirmation registration procedures, simplify the handling materials, strengthen data sharing, promote online handling, and reduce the burden of market subjects. The third is to optimize the listing process of delisting sector. On the basis that the host securities firm assists the delisting company in handling the listing procedures, the delisting company directly enters the delisting sector for listing and transfer in accordance with the provisions of the national stock transfer company, and clarify the connection arrangement of information disclosure during the transition period to ensure the right to know of investors.
In terms of optimizing the continuous supervision system of delisted companies, first, establish information disclosure and corporate governance arrangements suitable for the actual situation of delisted companies, respect corporate autonomy and balance the cost of enterprise standardization. Second, implement classified supervision in combination with the operation status and standard level of delisted companies, establish differentiated supervision mechanism, reasonably allocate supervision resources and improve supervision adaptability; Enterprises that standardize the performance of information disclosure obligations may carry out issuance and financing and major asset restructuring in accordance with relevant regulations. If they meet the conditions, they may also apply for re listing or listing in the national share transfer system.
“In the past, the A-share delisting system was not perfect, resulting in the inability to effectively clear the companies that should have been delisted. These companies were gradually marginalized and produced a large number of small market value companies, occupying valuable market resources.” Haitong Securities Company Limited(600837) strategy team believes that at present, with the continuous improvement of policies, the normalized delisting mechanism of A-Shares is gradually taking shape.
